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| The Tax Publishers2020 TaxPub(DT) 0496 (Jp-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
Since assessee was not found to be recipient of salary income during the course of search and there was nothing on record that any documents/material/information was found during the course of search which remotely indicate that the assessee was recipient of salary income, therefore, levy of penalty was directed to be deleted.
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Penalty under section 271(1)(c) - Addition towards salary income made by AO during the course of proceedings under section 153A - Imposition of -
A search was carried out at residential premises of assessee and in response to notice issued under section 153A, he filed the return declaring the same income. During the course of assessment proceedings when assessee prepared statement of affairs, it came to his notice that salary from M/s G, which was credited in his account but not actually received was left to be included in the income by mistake. AO added the same to the total income of assessee. On this addition, he initiated penalty proceedings under section 271(1)(c) on account of concealment of particulars of income.Held: Penal provisions must be strictly construed and only on satisfaction of conditions specified therein, the penalty could be levied. Assessee was not found to be recipient of salary income during the course of search. There was nothing on record that any documents/material/information was found during the course of search which remotely indicate that the assessee was recipient of salary income. It was only during the course of proceedings under section 153A that AO noticed that assessee was in receipt of salary income and which assessee disclosed. Therefore, none of the conditions specified in Explanation 5A to section 271(1)(c) was satisfied and therefore, levy of penalty was directed to be deleted.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
INCOME TAX ACT, 1961
Section 271(1)(c)
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